Report: More Mortgage Interest Deduction Goes to the Wealthy After Changes

Changes to the Mortgage Interest Deduction ostensibly made the housing subsidy more progressive. The real consequences of the change, however, make the deduction "significantly more inequitable that it was in years past."

1 minute read

May 8, 2018, 12:00 PM PDT

By James Brasuell @CasualBrasuell


golf course homes

Arina P Habich / Shutterstock

One of the most consequential changes included in the GOP tax reform bill signed by President Trump at the end of 2017 targeted the Mortgage Interest Deduction.

Writing for Greater Greater Washington, David Meni explains the consequences of the change for tax revenue and the demographics of the Mortgage Interest Deduction:

A recent report by the Joint Committee on Taxation (a non-partisan arm of Congress, like the Congressional Budget Office) shows that while the recent tax bill will shrink the MID considerably, it also will cause the program to give even an even larger share to the wealthiest homeowners.

The cause of this regressive shift of the deduction's benefit is because so many more middle class taxpayers will shift to the standard deduction. "Last year, about 4% of the MID went to households making more than $1 million a year. With the changes to the rest of the tax code, those households now take close to 10% of the deduction," according to Meni.

Thursday, May 3, 2018 in Greater Greater Washington

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight